By inserting this type of demand in the pharmaceutical industry, the result is quite favorable for the supplier. This problem of lack of bargaining power on the part of the buyer is attempted to be solved by strategies such as government policies or subsidies to those who cannot afford it, tax incentives for retail companies. smaller size creating competition and bulk purchasing by organizations such as HMOs. and OPPs. (Business Data Insight, 2013)THE BARGAINING POWER OF SUPPLIERSChemical suppliers lack as much bargaining power as customers. Chemical entities are almost a commodity; their competition is therefore adjusted by price. There are, however, examples of a few chemical companies that have successfully integrated downward; examples include Orchid Chemicals & Pharmaceuticals, Dr. Reddy's Laboratories and Shasun Pharmaceuticals. In recent years, we have seen the emergence of a new type of supplier. CROs and biotechnology companies support large pharmaceutical companies through several stages of R&D. Examples of support offered include existing knowledge on new chemical entities and drug trials. However, this does not pose a great threat because they do not have significant expertise in many essential elements and they are more dependent on pharmaceutical companies than pharmaceutical companies on them. (Business Data Insight, 2013)Generic industry type